Tax Newsletter - October 2020
España -
Beneficial owner principle not applicable if not expressly allowed by tax treaty
Supreme Court draws this conclusion because an interpretation guideline supplied by the commentaries on the OECD model tax convention cannot invalidate the contents of a tax treaty agreed between signing states.
Judgments
- International tax evasion and tax fraud.- A request for information issued in the context of an information exchange request from another member state must be able to be challenged by the owner of the requested information
- Corporate income tax.- It is contrary to EU law to establish a different double taxation tax credit mechanism depending on the residence of the paying entity
- Corporate income tax.- The neutrality regime cannot be denied for transactions in which the only tax advantage is the deferral regime itself
- Personal income tax.- The exemption for reinvestment in the taxpayer’s principal residence is confirmed at the time of the exchange for a future building
- Transfer and stamp tax.- In contributions of buildings with assumption of liabilities there are two agreements for the purposes of Transfer and stamp tax
- Transfer and stamp tax.- Transfers of remaining ownership share are subject to transfer tax if the property is divisible or if they can be avoided or reduced by making a different allocation
- Transfer and stamp tax.- A stamp tax lien does not have to be noted with the entry for the property because this tax is not levied on the transfer
- Transfer and stamp tax.- A horizontal division before termination of co-ownership is not subject to stamp tax due to being an inescapable prior element to be able to end the condominium
- Excise tax on spirits and alcoholic beverages.- Even if the report submitted to apply for a refund of the tax is incomplete, entitlement to a refund of the tax does not disappear if substantive requirements are met
- Cadastral values.- The penalty required in the cadastral regulations for failure to report alterations to the physical or economic characteristics of a property takes priority over that determined in the General Taxation Law
- Collection procedure.– In recovery of state aid late-payment interest is governed by EU legislation
- Enforcement procedure.- Unjustified delays by tax authorities in receipt and enforcement of decisions and judgments partially upholding claims may lead to right to assess becoming statute-barred
Decisions
- Transfer pricing.- Not all transfer pricing adjustments require a secondary adjustment
- Corporate income tax.- Quantification of tax credit base for R&D&I activities is not binding on tax authorities
- Administrative procedure.- Right to a refund of tax incorrectly paid can be tolled as a result of activities carried out on other parties
- Audit procedure.- Tax auditors must give proper reasons for using indirect assessment method
- Enforcement procedure.- The period for issuing a second assessment after a decision fully upheld is the general statute of limitations
Resolution requests
- Corporate income tax.- Dividends paid before joining a tax group cannot be eliminated to calculate the capitalization reserve
- Corporate income tax.- Minimum holding period to be eligible for the exemption provided in article 21 of Corporate Income Tax Law does not include the time the interest was owned by a related party who is an individual
- Personal income tax.- To be eligible to apply the exemption for work performed abroad it is irrelevant how intragroup services have been priced
- Nonresident income tax.- The migration of an LLC to Spain is not subject to tax in this country
- Wealth tax.- DGT analyzes various issues related to family business exemption for businesses engaged in property leasing
- Tax on economic activities.- The activity of buying and selling securities for a company's own benefit is not subject to the tax on economic activities
Legislation
- The laws on the tax on financial transactions and on the tax on certain digital services have been published
- Publication of the reference rates for calculating the annual equivalent rate for fourth calendar quarter of 2020, for the purpose of characterizing certain financial assets for tax purposes
Miscellaneous
- European Union updates tax haven blacklist
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